Marvell Bets Big on AI Chips for Growth

So, guessing you heard about Marvell Technology and how they're doing, right? They're kinda banking on those fancy custom chips for AI stuff in data centers. Like, the demand for these things is just huge, and it's really helping them grow. Plus, those networking chips and electro-optics are getting a lot of orders too.

This is all helping those big companies, you know, the hyperscalers, build up their systems to handle all that AI work. Marvell even mentioned on their earnings call that they think this AI wave is gonna keep going strong. Why? Because big companies are spending big bucks, there are new data center projects from other countries, and even new players are popping up, opening up even more chances for growth.

Their data center business is a big deal, making up like 76% of their total money, which was $1.44 billion last quarter. And get this, their other areas like carrier and enterprise networking are bouncing back after things were a little slow with inventory.

Someone who watches the market, Angelo Zino, said he thinks those custom chips will be the main way they grow over the next few years. Even though the profit margin might be a bit lower on those, they'll still help the bottom line. He also thinks a webinar they have coming up could be interesting, maybe showing off more opportunities and even some new customers for 2026. Sounds kinda cool, right?

Now, it's not all sunshine and rainbows, tbh. The consumer side, like gaming stuff, was a bit weak. Sales dropped by 29% because of how gaming demand changes with the seasons. And the industrial part of their business also saw a dip in sales. So, maybe not everything is booming.

After they shared the news, their stock went down a little, around 2%. They're thinking they'll make about $2 billion next quarter, which is pretty close to what the experts thought they'd make. Remember back in May? They actually put off their investor meeting because things in the economy were a bit uncertain. But hey, they still made $1.9 billion last quarter, which was even a little more than what folks expected.